OpenAI recently unveiled its latest feature, the "deep research" tool within its ChatGPT, as the competition intensifies with China's DeepSeek chatbot. This announcement came during OpenAI's event in Tokyo, where the company's chief executive, Sam Altman, highlighted the necessity of advancing artificial intelligence (AI) technology to sustain competitiveness.
DeepSeek has emerged as a formidable competitor to OpenAI, sparking interest across the technology sector for its high performance and markedly lower costs. According to OpenAI, the new deep research tool aims to provide users with quicker access to comprehensive reports by leveraging extensive online data analysis. Altman expressed confidence about the tool's capabilities, stating, "You give it a prompt, and ChatGPT will find, analyze, and synthesize hundreds of online sources to create a comprehensive report at the level of a research analyst." This innovative approach is intended to streamline processes previously requiring extensive human input.
The backdrop to this competitive clash sees SoftBank Group, led by its founder Masayoshi Son, exploring partnerships with OpenAI to boost Japan's AI infrastructure. Reports indicate they plan to announce significant developments during their meeting with Japanese Prime Minister Shigeru Ishiba, which could offer unprecedented incentives for AI advancements across the archipelago. Meanwhile, DeepSeek has already made substantial strides, leading to speculation about whether it can level the competitive playing field previously dominated by US-based technologies.
For many firms, the ease of integrating with DeepSeek's technology is proving attractive. Hemanth Mandapati, the head of the German startup Novo AI, shared his personal experience at the GoWest conference, remarking, "If you have built your application using OpenAI, you can easily migrate to the other ones... it took us minutes to switch." His remarks exemplify the growing sentiment among European startups adopting DeepSeek, pointing to its reduced financial burden without sacrificing quality.
Meanwhile, the DeepSeek-R1 model integrated with Tencent Cloud epitomizes the rapid advancements within AI. This model allows even novice developers to deploy sophisticated AI quickly, bypassing traditional setup hurdles. The capabilities of DeepSeek are already being compared to the highest-performing AI models available, raising questions about the effectiveness of US tech’s billion-dollar commitments to AI development. Reports suggest training DeepSeek's capabilities required relatively minimal investment, under US$6 million, potentially changing the way companies evaluate AI utility.
Competition and controversy do not seem far off, as analysts have observed DeepSeek potentially reverse-engineering US AI models to surpass existing limitations. OpenAI's Altman affirmed, "DeepSeek is certainly an impressive model, but we believe we will continue to push the frontier and deliver great products. We’re happy to have another competitor," emphasizing the need for innovation amid intense pressures from the rise of DeepSeek.
Despite its successes, DeepSeek is not free from scrutiny. Concerns linger about its practices, including whether it accurately licenses its data or whether its output is unduly biased against certain narratives—specifically those depicting China unfavorably. Regulatory bodies worldwide are beginning to investigate the nature of these applications to protect consumers.
The tech community remains divided on the potential impacts of DeepSeek. Sanjot Malhi, partner at Northzone, succinctly summarized the broader mood: "While the future of DeepSeek as a business is difficult to predict, the structural impact seems quite pervasive." With US tech firms investing heavily to maintain their competitive edge, the emergence of DeepSeek provides European companies with newfound capabilities, lessening the advantage previously enjoyed by their US counterparts.
The juxtaposition of OpenAI's legacy and aspirations alongside DeepSeek's significant innovations paints a complex picture of the AI industry as it stands today. Future advancements from both entities will shape the evolution of technology and reshape competitive landscapes across the globe.